Central Bank announces Monetary and Banking developments for June 2016

posted on 21/07/2016: 1723 views

The Central Bank of the UAE has announced that the Money Supply aggregate, M1, decreased by 1.6%, from AED 488.9 billion at the end of May 2016 to AED 481 billion at the end of June.

The Money Supply aggregate M2 decreased by 0.5%, from AED 1186.4 billion at the end of May 2016 to AED 1180.4 billion at the end of June.

The Money Supply aggregate M3 also decreased by 0.5%, from AED 1371.3 billion at the end of May 2016 to AED 1364.8 billion at the end of June.

The reduction in M1 was mainly due to a decrease of AED 9.3 billion in Monetary Deposits. The decrease in M2 was mainly attributed to a reduced M1, which overshadowed an AED 1.9 billion increase in Quasi-Monetary Deposits. M3 too decreased owing to reduced M1 and M2 and an AED 0.5 billion reduction in Government Deposits.

Gross bank assets, including bankers' acceptances, increased by 0.5%, increasing from AED 2506.1 billion at the end of May 2016 to AED 2518.5 billion at the end of June. Gross credit also increased by 0.8%, rising from AED 1531.8 billion at the end of May 2016 to AED 1543.4 billion at the end of June.